VIJAYAWADA: An integrated steel plant with a capacity of 24 million metric tonnes per annum is set to be established at Nakkapalle in Anakapalle district with an investment of Rs 1.5 lakh crore. AM/NS India, a joint venture of ArcelorMittal and Japan’s Nippon Steel, will set up the plant. It is expected to create nearly 70,000 direct and indirect jobs. A formal announcement is likely to be made after the State Cabinet, scheduled to convene next week, discusses the proposal. In a post on X, the TDP termed the project ‘biggest investment in India’.
As per a document accessed by the TNIE, besides the integrated steel plant, a proposal has been submitted for a co-terminus captive port with a total of 17 berths. The project will be taken up in two phases with an investment of Rs 11,198 crore. It will create a total of 8,000 jobs. In the first phase, five berths will be built with a total handling capacity of 20.5 MMPTA.
According to official sources, the proposal to establish a steel plant augurs well for Andhra Pradesh as the steel sector is only next to textiles in providing jobs. Further, they explained that representatives of AM/NS contacted IT and HRD Minister Nara Lokesh a couple of months ago, and proposed to set up the steel plant at Nakkapalle. They emphasised that the location was strategic considering the geographical locations such as the proximity to the coast, road connectivity via NH-16, rail link to Chennai Grand Trunk and adequate water sources from the Polavaram Left Main Canal. Sources explained that the steel plant will be set up in two phases. In the first phase, the plant will produce 7.3 million metric tonnes of stainless steel per annum. Its capacity will be expanded to 24 million metric tonnes per annum in the second phase.
1,800 acres readily available in Nakkapalle
While AMNS sought more than 4,500 acres of land for the project, the State government has offered to immediately provide 1,800 acres of land adjacent to the Bulk Drug Park in Nakkapalle as it is readily available. The first phase of the steel plant is expected to be completed by January 2029 and the second phase by 2033.
Official sources highlighted that AMNS India already has an iron slurry pipeline between Kirandul in Chattisgarh and Visakhapatnam Port, which is used for transportation of iron ore. “It has been proposed to extend the same pipeline to the steel plant at Nakkapalle. Further, AMNS India has sought government help in procuring iron ore,” sources explained.
When contacted by TNIE, those in the know of things maintained that there would be no conflict of interest between the proposed steel plant by AM/NS and the existing Visakhapatnam Steel Plant. While AM/NS will produce stainless steel, VSP produces steel rods, they noted.
